Cayetano: Tasking DOF to determine income category of LGUs beneficial and constitutional

Senator Alan Peter Cayetano has expressed approval of the idea to transfer the task of assessing the income level of every local government unit (LGU) from Congress to the Department of Finance (DOF), saying it is not only beneficial, it is also constitutional.

One of the few lawyers in the Senate, Cayetano said allowing the DOF to take on the job will speed up the process, thereby ensuring that the resources the LGUs receive from the national government match their respective needs.

Cayetano made the assertion on August 2, 2023 during the period of amendments for Senate Bill No. (SBN) 2165 or the "Automatic Income Classification of Local Government Units" sponsored by Senate Committee on Local Government chair Senator Joseph Victor "JV" Ejercito.

The independent senator said with the standards clearly defined in the proposed measure, SBN 2165 is "valid and constitutional," citing Section 5 which sets the standards for the Secretary of Finance's administrative authority.

This includes the authority to reclassify the income of LGUs once every three years, and consider inflation and gross regional domestic product in evaluating if an LGU has experienced prolonged economic shocks that may warrant retaining its current income classification.

"I agree that it is the Minority Leader's duty to make sure that we do not keep giving away our powers until wala na tayong gagawin dito. But given the data given by Senator Ejercito na very sporadic talaga, years bago ma-reclassify, [makakatulong kung ibibigay natin sa DOF]," Cayetano said, addressing the concern of Minority Leader Senator Aquilino Pimentel III that the bill could be unconstitutional.

Income classification refers to the income category assigned to every LGU based on its annual regular income, which is a legislative task currently under the Senate and the House of Representatives.

It is used, among others, to determine the LGU's financial capability to undertake programs and projects, the amount of financial grants and other forms of assistance the LGU shall receive, and the appropriate maximum tax ceiling that the LGU can impose.

It is the DOF that manages the financial resources of the government and oversees the revenue operations of all LGUs, among others.

'Delegation has been done before'

If passed, SBN 2165 will delegate the task of determining the income classification of LGUs to the DOF.

The bill aims to ensure that the income classification of LGUs "conform[s] with the prevailing economic conditions and the overall financial status of local governments."

Cayetano said while the Senate deems every legislative responsibility important, it should be ready to delegate the said task to "ensure na may magre-reclassify [ng income level ng LGUs]."

He said Congress, after all, has done the same in the past with wages through the Regional Tripartite Wages and Productivity Board (RTWPB).

"Wage is one of the very, very important -- in fact, it is existential. Pero we delegated that to wage boards," he noted.

He said doing the same thing with income classification does not necessarily mean Congress is "giving away our powers until wala na tayong gagawin dito," nor is it losing the power to intervene when necessary.

Lawmakers, he said, can also still pass laws regarding income classification, similar to how they can pass laws for wage increases despite the wage boards being in charge of the implementation.

"When we feel that the delegated power is either not done, is doing it not that well, or whatever, [Congress can step in]. There are standards," he said.

"It will be now up to the courts if it is brought there," he added.

Cayetano: Paglipat ng pagtatalaga ng income category ng mga LGU sa DOF kapaki-pakinabang at 'constitutional'

Nagpahayag ng pagsang-ayon si Senador Alan Peter Cayetano sa panukalang ilipat sa Department of Finance (DOF) ang tungkulin ng Kongreso na tukuyin ang income classification ng bawat local government unit (LGU).

Aniya, hindi lamang ito kapaki-pakinabang, ito rin ay konstitusyonal.

Isa sa mga iilang abogado sa Senado, sinabi ni Cayetano na mapapabilis ang pagtatalaga ng income classification kung ibibigay ito sa DOF. Magreresulta aniya ito ng pagtitiyak na ang mga pondo na natatanggap ng mga LGU mula sa national government ay tumutugma sa pangangailangan ng kani-kanilang lugar.

Ipinunto ito ni Cayetano nitong Agosto 2, 2023 nang isagawa ang period of amendments para sa Senate Bill No. (SBN) 2165 o ang "Automatic Income Classification of Local Government Units" na inisponsor ni Senate Committee on Local Government chair Senator Joseph Victor "JV" Ejercito.

Kapag naisabatas, ililipat ng SBN 2165 ang tungkuling tukuyin income classification ng mga LGU sa DOF mula sa Kongreso.

Ang panukalang batas ay naglalayon na tiyakin na ang income classification ng mga LGU ay naayon sa "prevailing economic conditions and the overall financial status of local governments."

Ipinagkasundo ni Cayetano ang punto ni Minority Leader Senator Aquilino Pimentel III na posibleng maging "unconstitutional" ang gagawing paglipat at ang pagsang-ayon ng mayorya sa layunin ng panukalang batas.

Paliwanag ng independent senator, "valid and constitutional" ang SBN 2165, dahil sapat at malinaw ang mga pamantayang inilatag ng panukalang batas para sa awtoridad na ibibigay sa DOF, na nakalahad sa Section 5 nito.

Kabilang dito ang tungkuling baguhin ang income reclassification ng mga LGU isang beses bawat tatlong taon. Isaalang-alang din ang inflation at gross regional domestic product sa pagsusuri kung ang isang LGU ay dumanas ng "prolonged economic shocks" na maaaring maging dahilan kaya kailangang huwag baguhin ang kasalukuyang income classification nito.

"I agree that it is the Minority Leader's duty to make sure that we do not keep giving away our powers until wala na tayong gagawin dito. But given the data given by Senator Ejercito na very sporadic talaga, years bago ma-reclassify, [makakatulong kung ibibigay natin sa DOF]," pahayag ni Cayetano.

Ang income classification ay tumutukoy sa income category na itinatalaga sa bawat LGU batay sa anual regular income nito.

Ginagamit ito upang matukoy ang kakayahang pananalapi ng LGU na magsagawa ng mga programa at proyekto, ang halaga ng mga financial grant at iba pang uri ng tulong na matatanggap ng LGU, at ang naaangkop na ceiling ng buwis na pwedeng ipataw ng LGU.

Pinamamahalaan ng DOF ang mga resources ng gobyerno at pinangangasiwaan ang mga revenue operation ng lahat ng LGU, bukod sa iba pa.

Binanggit din ni Cayetano na dati nang ginawa ang paglipat ng kapangyarihan ng Kongreso. Ito ay nang ibigay sa Regional Tripartite Wages and Productivity Board (RTWPB) ang mga desisyon tungkol sa sahod ng mga manggagawa at ang pagpapatupad nito.

Aniya, bagama't itinuturing ng Senado na mahalaga ang bawat legislative responsibility, dapat ay handa itong italaga ang pagbibigay ng income classification "to ensure na may magre-reclassify [ng income level ng LGUs]."

"Wage is one of the very, very important -- in fact, it is existential. Pero we delegated that to wage boards," punto niya.

Sinabi ni Cayetano na ang pagdelegate sa income classification ay hindi nangangahulugang ipinamimigay ng Senado ang mga kapangyarihan nito "until wala na tayong gagawin dito." Hindi rin aniya nawawalan ng kapangyarihan ang Kongreso na makialam kung kinakailangan.

Ang mga mambabatas, aniya, ay maaari pa ring magpasa ng mga batas hinggil sa income classification, katulad ng pagpasa nila ng mga batas para sa dagdag-sahod kahit pa ang wage boards ang siyang namamahala sa pagpapatupad nito.

"When we feel that the delegated power is either not done, is doing it not that well, or whatever, [Congress can step in]. There are standards," aniya.

"It will be now up to the courts if it is brought there," dagdag niya.